Global Caprolactam Market Procurement Intelligence Report with COVID-19 Impact Analysis | China Petrochemical Development Corporation (CPDC), Royal DSM N.V

 Market Synopsis

Market Research Future (MRFR) postulates that the global caprolactam market is presumed to garner USD 14.9 billion by 2019. The market is anticipated to expand at a CAGR of 8.1% during the forecast period (2016-2022) owing to the increasing commercial importance of nylon. Caprolactam is referred to as an organic compound which is a colorless solid and is also a lactam of caproic acid. It is primarily used in the production of resins and nylon 6 fibers. A major portion of caprolactam is consumed in the production of nylon fibers for carpet, textile, and industrial yarns. The rest of the caprolactam is used in engineering films and resins.

Market Potential and Pitfalls

With the augmenting demand for industrial yarn coupled with the expansion in the automobile industry, the caprolactam market is estimated to flourish throughout the assessment period. Caprolactam market is also driven by the rising demand generated from the production of nylon-6 as a large portion of the compounds produced is used in the manufacturing of nylon-6. In water, caprolactam hydrolyzes and forms aminocaproic acid, which is especially used medicinally. It is also considered an important polymer which has a wide range of application across industries. Nylon fibers and resins possess superior properties such as elasticity, high strength, chemical & oil resistance, abrasion resistance, and low moisture absorbency, thereby triggering the demand for caprolactam across the globe. Raw materials like ammonia, cyclohexane, and phenol are used in the manufacturing of caprolactam. Due to the presence of several oil refineries in China and the U.S., the production of raw materials is concentrated.

 

The compound is used in several end-user industries like industrial yarn, textile yarn, carpet fibers, engineering plastics, and staple fibers, which is further estimated to augment the market growth globally. Additionally, technological innovations made towards improving the manufacturing process of caprolactam to reduce the production of ammonium sulfate is predicted to bolster the market growth in the coming years. Moreover, with the rising demand for engineering films and plastics in manufacturing automotive parts like gears, engine covers, and bearings, due to their resistance to greases and oils is estimated to propel the growth of caprolactam market.

On the contrary, product prices are presumed to increase throughout the appraisal period due to the highly volatile raw material prices. Such concerns are likely to vitiate the market growth in the coming years. Moreover, the plummeting cost of caprolactam due to oversupply and increasing production capacity is presumed to pose a threat to the growth of the market globally.

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Global Caprolactam Market: Segmental Analysis

The global caprolactam market has been segmented on the basis of source and end-user.

By mode of source, the global caprolactam market has been segmented into toluene, phenol, and cyclohexane.

By mode of end-users, the global caprolactam market has been segmented into textile stiffeners, textile yarns, synthetic leather, film coatings, plasticizers, plastics, and others. Among these, the segment for textile yarns is presumed to dominate the global market as it is extensively used in several applications including house furnishing and apparel. The augmenting demand for textile yarn and the use of nylon 6 fibers in upholstery, bedspread, carpets, and curtains are anticipated to positively impact the segment in the coming years.

Regional Insights

Geographically, the caprolactam market span across regions namely, Europe, North America, Asia Pacific, and Rest-of-the-World (RoW).

Among all the regions, the Asia Pacific region is presumed to experience the maximum growth rate owing to the increasing use of caprolactam in several applications coupled with the macroeconomic growth of the automotive and the textile industry. Moreover, rapid industrialization is leading to the establishment of several automotive and appliance manufacturing plants in China and India which is likely to positively impact the market growth. Also, burgeoning demand for passenger cars in China and India due to increasing disposable income is anticipated to trigger the market growth in the coming years.

Regions like North America and Europe are anticipated to witness significant growth throughout the appraisal period owing to the augmenting demand for lightweight materials in these regions. The metals are replaced with engineered plastics in lightweight vehicles due to properties such as high mechanical strength and low moisture absorption.

Industry Updates

May 22, 2018: Genomatica and Aquafil have recently announced the formation of Project EFFECTIVE, which is a collaboration of multiple companies in order to produce more sustainable plastics and fibers for commercial use by using bio-based technologies and renewable feedstocks. One of the primary objectives of Project EFFECTIVE is to develop more sustainable nylon made from bio-based caprolactam using renewable feedstocks.

Competitive Dashboard

The prominent players operating the global caprolactam market are BASF SE, China Petrochemical Development Corporation (CPDC), Royal DSM N.V., Kuibyshevazot Ojsc, China Petroleum & Chemical Corporation (Sinopec Limited), Lanxess Ag, UBE Industries, Honeywell International Inc, Shandong Haili Chemical Industry Co. Ltd., Sumitomo Chemical Company Limited, and others.

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